Revenue Accounting / Proration
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Passenger / Cargo Revenue Accounting

Revenue proration is a critical function that involves sharing of revenue on a prorata basis between interline carriers. A typical airline Revenue Accounting/Proration process is characterised by:

Critical impact on financial performance of an airline
High level of comlexity requiring specialised handling
Demand for specialised trained professionals – having intimate knowledge of business and airline accounting practices.
Highly people-intensive
Time consuming operations.

Outsourcing of Revenue Accounting/Proration operations can be a practical and viable option to cut down the operating costs, improve process effeciency and enhance profitability. Though outsourcing can bring important benefits to airlines – but realizing these benefits, demands careful ongoing planning and diligent oversight.

To be successful, an airline needs to select the right partner capable of forming the desired type of relationship it needs to accomplish its business objectives.

ABS, not only has the capability of managing the processes efficiently, but also improves productivity levels once processes are stabilised after migration. ABS can facilitate airlines in streamlining their revenue accounting functions and effectively support their business strategy by offering value-added services that increase the airline’s ability to process ticketing data efficiently with maximum billing accuracy.

ABS’s Revenue Proration services can assist airlines effectively manage the control, reporting and use of accountable documents. These include Tickets, Miscellaneous Charge Orders (MCO), Excess Baggage Tickets (EBT), Flight Interruption Manifest (FIM), Rejection Memos, etc. The services offered include:

Coupon Matching
Inward Interline Billings
Outward Interline Billings
Rejection and Correspondence handling
Maintaining and filing of Special Prorate Agreements (SPA) & Multilateral Prorate Agreement
Packing and Despatching of Invoices
Providing Management Reports

The important Revenue Accounting/Prorating services that ABS offers to you are as below:

Coupon Matching

This involves auditing and actual flight coupons for fares and taxes against GDS/System booking to check for accuracy for coupons that are flown, billed, refunded or exchanged.

Inward Interline Billings

The incoming interline billings are factually evaluated with a high degree of accuracy for correct fares and taxes.

Outward Interline Billings

An invoice is raised on behalf of the client to the ticket-issuing carrier for claim of revenue share for the flown sector(s).

Flight Interruption Manifest

When a flight is interrupted due to technical or other reasons, the flying carrier issues a Flight Interruption Manifest (FIM) to the transporting carrier. The sharing of revenue is done on the basis of this manifest.

Rejection and Correspondence handling

If the billed values are outside the pre-determined tolerance levels, a rejection is made.

Reporting

Accurate passenger revenue and segment reports are made available to the airline management routinely to aid quick decision-making.

Fare Audit

ABS provides auditing of fares so that the airlines and travel agencies can maintain their accurate revenue. ABS deals with sending the ADMs to the faulty agents and to send ACMs to the agents in case of cancellation of tickets.

Refund Processing

ABS offers to the airlines processing the refunds to all the consolidator’s application and to all consolidators forwarding the application to the airline for refund through BSP link.